Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Darwin

<html><body><div class="page" title="Page 49">
<div class="section">
<div class="layoutArea">
<div class="column">
Residential heritage property around the Darwin is generally located in the suburbs of suburbs of Larrakeyah, Parap and Fannie Bay and include older elevated buildings - the majority constructed in the 1950s during the rebuild post World War II, according to the valuation firm Herron Todd White.
Herron Todd White's heritage property report said entry level prices to these locations is now in excess of $700,000, with this price point  driven by land value rather than the added value of the heritage dwelling. and said in order to develop these properties for a higher and better use, the existing appeal must be retained.
"Often this will result in the original façade of the building being kept and blended into the new improvements," HTW said.
"Features of heritage and vintage residential property include elevated or low-set dwellings, excellent cross ventilation with use of high ceilings, louvre windows, wrap around verandahs and good sized balconies. The allotments tend to be heavily landscaped with large trees to provide shade from the afternoon sun. Notably these dwellings have open space underneath so the breeze can move through the dwelling, cooling it quickly once the afternoon sun sets. The more modern version of the Burnett Homes are the Troppo designed dwellings.
"The market shows that this heritage or vintage style of residential property is preferred by owner occupiers rather than tenants. Given the high degree of regular maintenance and upkeep, landlords are less inclined to leave this in the hands of tenants who are unlikely to manage and incur the maintenance expenses.
"So while Darwin doesn’t necessarily offer the heritage feel of older Australian cities such as Sydney and Melbourne, there are pockets and hidden gems out there which can be transformed to achieve a tropical yesteryear feeling."
</div>
</div>
</div>
</div></body></html>

jonathanchancellor-7SQnKwU6yx

Hidden pockets of heritage gems in Darwin: HTW 

<html><body>
The 50 percent stamp duty discount announced in the Northern Territory Budget will drive more first home buyers into the local market in Darwin and Palmerston says Glenn Grantham, general manager of Raine and Horne Darwin.
The discount applies to built properties valued up to $450,000 and is capped at $10,000 for more expensive properties until 30 June 2017. 
The first home buyer grant of $26,000 remains.
Grantham said since last week’s Budget, first home buyer enquiry levels had picked up significantly, with housing markets in Palmerston expected to be the major beneficiaries. “This announcement will create the perfect storm for first home buyers who will enjoy the benefits of reduced stamp duty, at a time where we’ve had easing house prices in Darwin and historic low interest rates,” he said.
“The stamp duty breaks are going to help more first timers to jump off the rental treadmill and we expect housing markets under $450,000 in established Palmerston suburbs such as Bakewell, Driver, Rosebery, Farrar, Grey, Malden and Durack to benefit.
“This will get more first home buyers into the market, which is excellent policy-making in light of the low volumes we’ve experienced over the last two years.”
</body></html>

NT Budget helping first home buyers

<html><body>
Across Darwin over the three months to December 2015, 13.5 percent of homes resold at a loss compared to 17.3 percent at the end of the previous quarter and 10.2 percent a year ago.
The relatively less developed Litchfield region has recorded the highest proportion of loss-making resales over the quarter at 22.7 percent compared to 12.7 percent in both the Darwin and Palmerston council areas.
<a href="https://www.propertyobserver.com.au/images/2016/03/30/Screen%20Shot%202016-03-30%20at%203.32.52%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2016/03/30/Screen%20Shot%202016-03-30%20at%203.32.52%20PM.png" alt="">
</body></html>

po-LsXgBTHBmX

 Resale loss for residential Darwin property slowing: CoreLogic RP Data Pain & Gain

<html><body><div class="page" title="Page 52">
<div class="section">
<div class="layoutArea">
<div class="column">
Darwin, the capital city of Northern Territory, was approaching the bottom of market for both houses and units in valuation firm Herron Todd White's latest property clock, April 2016, which also focuses on the markets in the fringe suburbs.
To identify the fringe suburban areas of the Darwin residential market, HTW split it up into three key areas. These are inner city, the northern suburbs and the nearby satellite city of Palmerston. Each of these areas has their own fringe suburbs with a common trait shared by all - they generally have the most affordable prices for their sector.
<a href="/images/2016/04/20/Screen%20Shot%202016-04-21%20at%208.12.53%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/20/Screen%20Shot%202016-04-21%20at%208.12.53%20AM.png" alt="">
The inner city fringe suburbs comprise Stuart Park, Ludmilla and The Narrows. Stuart Park occupies a position nearest the Darwin CBD area and has a mix of units and houses whilst Ludmilla and The Narrows are primarily single residential dwellings on large residential allotments. Generally, those who can’t afford the pricier options of the CBD, Larrakeyah, Parap or Fannie Bay look to these suburbs as they are in relatively convenient locations close to the city, with good access to public transport, local schools and other amenities. There has been little to no activity on the sales front for houses in these suburbs, with Stuart Park having only four house sales in the December 2015 quarter. This is reflective of the Darwin market overall which is struggling, with overall vacancy rates up to 8.2 percent (source: REINT).
<a href="/images/2016/04/20/Screen%20Shot%202016-04-20%20at%209.12.03%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/20/Screen%20Shot%202016-04-20%20at%209.12.03%20AM.png" alt="">
The volume of unit sales in the inner city fringe suburbs has fared substantially better, however, with sales in Stuart Park increasing by 42% but with a median price drop of 10%  (source: REINT). This can be attributed to new developments being released to the market such as the highly awarded Artique complex and savvy investors jumping on a bargain. These figures can be significantly misleading however. Due to the withdrawal of the first home buyer’s grant for existing dwellings, new developments have become extremely attractive while existing units have experienced substantial softening.
A semi-modern two-bedroom unit in Stuart Park recently sold for as low as $385,000. The downturn in the market has opened up the potential for good buying in the area, with the added convenience of being close to the CBD.
A secondary fringe area is the ex-government housing dominated part of the northern suburbs, particularly Malak and Karama. Considered the most inferior part of this area, Malak and Karama are primarily made up of single residential dwellings with a small number of units. These suburbs have performed fairly similarly to other parts of the northern suburbs, with median house prices down approximately 10% on the quarter for both (source: REINT). Good buying can definitely be had, with entry level ground level three-bedroom houses being sold in the mid $400,000 range. In the upper range, elevated properties (considered superior due to the ease of being built under) can be purchased for as low as $520,000.
Vacancy rates are up by 3.4% to 9.2% (source: REINT) year on year, which again is a reflection of the slowing down of the Darwin residential market as a whole. Rents for three-bedroom dwellings in this area have dropped to a median amount of $540 per week which equates to a 16.9% drop per annum. Long term, these suburbs do make for good buying for those who can’t afford the more expensive locations closer to the Nightcliff foreshore and Casuarina Shopping Centre. In the medium term, Malak and Karama are expected to follow the rest of the greater Darwin market, having experienced a large amount of softening since 2014.
Recent sales evidence has shown the market is stabilising however, with vendors setting reasonable price points to meet the new market conditions.
This leaves us with Palmerston, a satellite city approximately 20 kilometres south of the Darwin CBD. The removal of the first home buyer’s grant for existing properties has had a large impact across the board. Fringe suburbs include Moulden, Rosebery, Woodroffe, Driver and Bakewell. Sales volumes for dwellings are significantly down, with last quarter each posting drops of at least 50% on annual figures. Cheap buys in Moulden mean that the mid to high $300,000 range can grab you a neat and tidy three-bedroom property. 
Unit stock is also feeling the pinch, with drops in median prices ranging from 2.2% in Rosebery to 18% in Bakewell (source: REINT). These figures reflect a market that has seen a significant downturn, with little evidence of an increase in values any time soon. In Bakewell, a two-bedroom semi-modern unit can be bought for $285,000 and in Rosebery a modern two-bedroom unit can be picked up for $350,000.
The problem is all older stock is competing against brand new dwellings in Durack Heights or Bellamack with first home buyer concessions to boot. There are bargains out there obviously with prices down and vendors needing to sell, however it has become a waiting game for purchasers as with an excess of supply on the market they are spoilt for choice. There has been recent market evidence that 2016 won’t be as bad as 2015, but there is no doubt the polarisation of new versus old stock will remain until the Northern Territory Government addresses changes to the first home buyer’s scheme. A substantial election promise tackling this issue could be on the cards, with real estate professionals across the board agreeing on a necessary change and an upcoming general election scheduled for August 2016.
 
</div>
</div>
</div>
</div></body></html>

prateek24-ezbwHMbNAk

Fringes reflect Darwin's struggle, units fare better than houses: HTW 

<html><body>
The Darwin housing market has been one of the standout performers in previous years, however home values are down 3.6 percent over the past twelve months and have fallen by a cumulative 3.7 percent over the past five years, according to the latest NAB housing insights report.
The softening in growth conditions is likely related to the wind down in major infrastructure spending and slower population growth, both of which have previously been strong drivers of housing demand in the past.
The regional area of Darwin, although relatively sparsely populated outside of Alice Springs, has seen values fall by a similar 2.5 percent over the past twelve months. 
While home values are down 3.6 percent over the past year, rents are falling at a faster pace which is pulling rental yields lower in the northernmost capital city. Despite the recent yield compression, gross rental yields remain amongst the highest of any capital city in Darwin.
<a href="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%203.35.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%203.35.10%20PM.png" alt="">
</body></html>

Mining investment winds-down further, putting added pressure on the NT housing market: NAB

<html><body><div class="page" title="Page 17">
<div class="layoutArea">
<div class="column">
Across Darwin over the three months to September 2015, 16.9 percent of homes resold at a loss compared to 17.2 percent at the end of the previous quarter and 9.4 percent a year ago, according to the most recent CoreLogic RP Data Pain &amp; Gain report. 
The relatively less developed Litchfield region has recorded no loss-making resales over the quarter compared to 15.9 percent in Palmerston and 19.5 percent in Darwin. 
<a href="/images/2016/01/29/Screen%20Shot%202016-01-29%20at%2011.39.48%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/29/Screen%20Shot%202016-01-29%20at%2011.39.48%20AM.png" alt="">
</div>
</div>
</div></body></html>

Darwin's Litchfield survives loss-making quarterly resales: CoreLogic RP Data Pain & Gain

<html><body>
 
CoreLogic RP Data analysis shows rents across the combined capitals rose by 0.2% in January 2016.
 
Across individual capital cities, rents rose over the month in Sydney, Melbourne, Adelaide, Hobart and Canberra while they fell elsewhere. 
 
Dwelling rental rates across the combined capital cities are recorded at $443 per week and they are unchanged over the past year.
 
CoreLogic RP Data have been tracking annual rental changes since 1996 and over that time rental growth conditions have never been weaker.
 
At the same time last year rental rates had increased by 1.7% highlighting that the slowdown in rental conditions has been sharp over the year.
 
"As highlighted in previous reports, heightened construction activity, slowing population growth, higher than normal investment activity and stagnant wage growth are key contributors to unchanged rental rates over the past year," Cameron Kusher at CoreLogic RP Data said.
 
"More rental stock at a time when demand is easing due to slowing population growth and little wage growth for renters has resulted in flat rental conditions over the past year.
 
"For renters there are a lot more accommodation options in the market while landlords are having to respond to a more competitive environment which, in many cases means keeping rents steady to keep the tenants. 
 
Looking across the individual capital cities, over the past year, rents have increased in Sydney (+1.4%), Melbourne (+2.1%), Hobart (+0.1%) and Canberra (+1.8%).
 
Rental rates have fallen over the past year in Brisbane (-0.7%), Adelaide (-0.4%), Perth (-8.6%) and Darwin (-13.4%).
 
Across every capital city except Canberra the rate of annual rental growth or decline is currently lower than it was a year ago indicating that the weaker rental market conditions are prevalent across most capital cities.
 
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%208.42.21%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%208.42.21%20AM.png" alt=""> 
Combined capital city house rents were recorded at $487 per week in January 2016 and unit rents were $465 per week. Over the past month, house rents rose by 0.1% while unit rents rose 0.2% and over the past three months house rents rose 0.1% compared to a 0.5% rise in unit rents. 
The data indicates that demand for unit product, while still quite weak, is holding up better than rental demand for houses, despite the increase in new apartment supply. Over the past year, house rents are -0.3% lower while unit rents have increased by 1.5%. It is important to note that a much higher proportion of total unit stock is rented compared to housing stock. 
For as long as CoreLogic RP Data have been tracking rental growth figures, house rents have never before fallen on an annual basis while annual unit rental growth is occurring at its slowest pace since late 2003. 
The additional accommodation being provided by the current building boom along with recent record high levels of investment purchasing is adding substantial new dwelling supply to the market at a time when the rate of population growth is slowing from quarter to quarter.
Furthermore, wages are increasing at their slowest pace on record which indicates that many renters simply don’t have the means to pay more for their accommodation. Additionally, it is arguable that landlords havent had much incentive to push yields higher due to the low cost of debt and strong capital gains. All of these factors combined are continuing to ease rental market pressures and resulting in the weakest rental market on record. 
We expect that rental market conditions are likely to remain weak, potentially softening further over the coming months. In fact there is a possibility that rental rates may start to fall on an annual basis. While this is great news for renters, investors are facing the prospect of weaker capital gains coupled with falling rents which would push down their yields.
The large pipeline of residential construction activity and recent high levels of investment demand means that renters are likely to continue to have plenty of choice when looking to renew their lease.
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.39.05%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.39.05%20PM.png" alt="">
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.41.15%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.41.15%20PM.png" alt="" width="810" height="331">
Capital city rents are increasing at their slowest annual pace on record and with value rises outpacing rental growth, rental yields are also sitting close to record low levels currently. At a combined capital city level, gross rental yields were recorded at 3.4% for houses in January 2016 and at 4.3% for units. Combined capital city house and unit rental yields are currently both at record lows.
A year ago, gross rental yields were recorded at 3.6% for houses and 4.5% for units across the combined capitals. With a sluggish rental market in which interest rates may fall even further, we may see a further compression of yields over the coming months however, this will be somewhat dependent on growth in home values as well as the direction of rental rates. This means that capital growth, which is slowing, is likely to remain a much more important factor for property investors.
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.43.28%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.43.28%20PM.png" alt="" width="823" height="688">
 
Rental yields are lowest for houses in Melbourne (2.9%) and highest in Darwin (5.3%). Unit yields are lowest in Melbourne at 4.0% and highest in Hobart at 5.3%. Sydney and Canberra house yields are currently at record low levels while Sydney and Melbourne unit yields are also at historic low levels. 
Across every capital city, house rental yields are lower now than they were at the same time last year. This is reflective of lower rental growth relative to house value growth. 
The unit market shows similar trends to the detached housing market. Yields are higher than a year ago in Adelaide and Canberra while elsewhere yields have softened over the past year. The generally softer yields point to market conditions in which unit value growth has generally outpaced unit rental growth.
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.45.39%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.45.39%20PM.png" alt="">
</body></html>

Darwin sees sharp slowdown in rental conditions: CoreLogic RP Data January rent review

<html><body>
Darwin was the clear underperformer across all capital cities in Australia, according to the latest Office Market Report by the Property Council of Australia, with the vacancy rate nearly doubling over last year.
This was the result of an economic convergence of increasing supply and lower demand. The city reported the highest supply rate increase in Australia at the same time as it was experiencing the lowest demand growth, says the PCA.
The vacancy rate rose to 20.7 per cent from 10.9 per cent last year.
“Darwin city has recorded the highest supply rate increase and the lowest demand growth in the nation,” said PCA Northern Territory director Ruth Palmer said.
“A significant amount of supply has been brought onto the market over the last 24 months. This has occurred despite demand weakening during the same period.”
The report shows that negative demand was concentrated in the lower grades. 
“Darwin’s vacancy rate has jumped 9.8 per cent and this was largely due to -18,727sqm of net absorption and 16,286sqm of supply additions. 
All grades of space recorded vacancies of about 15 per cent. 
“In order for us to see a long-term improvement in the office market, we need further investment in the City Centre, in particular the implementation of the Darwin City Centre Master Plan projects,” added Palmer. 
“Furthermore, it's critical that we receive a commitment from the Northern Territory Government to increase employment levels in the City Centre. 
“Not only do we need to increase employment levels and investment in the city, we need to encourage further residential development to allow for additional population growth in our City Centre. 
<a href="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2010.41.43%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2010.41.43%20AM.png" alt="">
</body></html>

Darwin office vacancy rate doubles: PCA

<html><body><div class="page" title="Page 19">
<div class="section">
<div class="layoutArea">
<div class="column">
Darwin’s industrial property market has been relatively steady throughout 2015, according to the Herron Todd White latest report.
There has been much speculation locally about the imminent Inpex cliff project.
The construction phase of this project is expected to be completed in 2017 and will therefore no longer compete for all types of resources in Darwin, including property.
"Our expectation in the industrial property sector at least is that demand for industrial accommodation should continue at current levels.
"The commencement of the production phase for Inpex will see demand shift from construction to maintenance which will still require significant accommodation."
Peak periods will also be experienced at shutdowns and if future trains of either Inpex or the Conoco Philips plant are commissioned.
Local property is as well placed as it has ever been to supply the necessary land for the required developments.
There is a choice of a number of industrial estates and we note that work is commencing on the new Truck Central site at the corner of Tiger Brennan Drive and Tivendale Road.
This will include blocks of land available for development associated with the transport industry.
While there were few landmark sales in 2015, the industrial property market in Darwin moved along steadily through the year.
"It would be fair to say that it fared better than most other market segments in Darwin and still retains a positive outlook," the report noted. 
 
</div>
</div>
</div>
</div></body></html>

jrobinson-rf4aSBido9

Inpex underpins Darwin industrial property: Herron Todd White

<html><body><div class="page" title="Page 49">
<div class="section">
<div class="layoutArea">
<div class="column">
Herron Todd White's recent in month report highlighted Darwin was still attaining the highest rental yields of any capital city in Australia, sitting at 5.5% for both houses and units.
Despite having the highest rental yields, HTW noted CoreLogic RP Data's Home Value Index shows that Darwin has recorded the most substantial decline in values with a fall of 3.2% over the three month period to August 2015.
"Local agents have seen lower levels of investor transaction in the past 12 months with owner occupiers forming a greater proportion of buyers in the current market," according to Herron Todd White's November review .
It noted the level of investment lending has shown signs of cooling in recent months, with lending finance data released by the Australian Bureau of Statistics showing a 35.6% decline in the value of new lending to investors in the Northern Territory between May and August 2015.
The report explains that there are a number of developments under construction and near completion, including Horizons on Harvey, Mauna Loa Apartments, Jepun on Smith Street Mall, Catalyst, 29 Daly Street Darwin, Tech 1 and a number of boutique buildings on inner streets of Stuart Park and Larrakeyah, with a total of 500 apartments.
"Darwin CBD is currently experiencing a high level of apartment construction driven by strong demand from first home buyers due to the FHOG being limited to new properties.
"Among these developments, 2-bedroom sales above the $600,000 mark have seen fewer transactions compared to 1-bedroom, studio and 2-bedroom apartments in the price range of mid $400,000 to $550,000 which particularly appeal to investors and are offering a gross yield in the range of 5% to 6%."
The report goes on to add that although rents have come back in the past six to eight months, the relatively higher rental yield compared to other state capitals keeps properties in Darwin attractive to interstate investors, especially new apartments, due to the benefits of better rental rates, tax savings, less maintenance issues and depreciation benefits.
"In previous years, up to 70% of off the plan apartments were sold to investors.
"In contrast, the current demand for off the plan properties has shifted towards a more even market of investors and owner occupiers.
"In the past, several developments in the inner Darwin CBD were offering attractive incentives of up to 8% guaranteed rental returns.
"These developments had been well received by both local and interstate investors.
It suggested that today, most of the current off the plan apartments no longer provide such incentives apart from the Northern Territory Government’s Real Housing for Growth head-leasing initiative developments.
"Under the plan, 2,000 new homes will be constructed in the Northern Territory in the next four years and these properties will be leased to eligible key service industry workers at 30% subsidised rent.
"At present, properties available under the scheme are The Eclipse development in Coconut Grove in Darwin’s north, Farrar Village development in the satellite city of Palmerston and a number of developments in Alice Springs."
These developments have been well received by investors due to the attractive return of guaranteed rental income stream for a ten year period, according to the November review.
"Looking at detached housing specifically, Defence Housing Australia properties in the northern suburbs of Muirhead, Bellamack, Johnston and Zuccoli in Palmerston are still attracting both local and interstate investors offering yields ranging from 5% to 6% with a ratchet clause in place which ensures rent cannot fall below the contract rental price.
"At present, Darwin is experiencing higher than normal rental vacancy at 3.3% as a result of rising home ownership as tenants have been able to get a foot onto the property ladder.
"Looking to Palmerston, owner occupiers formed a greater proportion of buyers in the new subdivision of Durack Heights and Zuccoli as FHOG are available to purchase house and land packages.
The report also suggests that established stocks of both units and detached dwellings in Palmerston, Darwin CBD and the northern suburbs have been the hardest hit segments in the current market.
"Local agents have advised that these stocks are experiencing extended selling periods and a lack of interest as investors and first home buyers are purchasing new properties. 
"The continued decline in house prices for established homes will affect investor borrowers who are looking to borrow money using their equity to purchase investment properties plus the need to stump up a bigger deposit.
"The current trend of softening in Darwin is likely to persist over the coming years. The cumulative effect of APRA’s tighter lending conditions and more expensive mortgage rates will affect investors’ confidence and the long term sustainability of Darwin."
</div>
</div>
</div>
</div></body></html>

Darwin

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Darwin

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News